The Pause That Refreshes ~ The Risk Averse Alert

Tuesday, November 25, 2008

The Pause That Refreshes

Despite going nowhere today, you really have to like how the market held up...

OEX 5-min

You see a price-RSI divergence at today's low, leading to a turn higher ... then another during the last hour of trading, probably meaning the market will start the day Wednesday under some pressure.

The 400 area should be the vicinity where support builds. Other than the possibility of selling leading the market lower tomorrow ... serving to consolidate Friday's and Monday's gains ... trading might otherwise be rather dull.


The relative collapse of the CBOE Put/Call Ratio should be seen as a double edge sword. On one hand, there appears to be belief in the market's charge higher from lows late last week. On the other hand, though, it appears something of a test of that belief might be in order. This could take several days...

If you're interested, check out my 401(k) Investor's Guide to the Year 1932.

Fast Money
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Anonymous said...

be cautious..light volume due to holiday....